do-my-coursework

0% Plagiarism Guaranteed & Custom Written

Employers must pay FICA taxes twice the amount of the FICA taxes withheld from their employees.

01 / 10 / 2021 Assignment

This paper circulates around the core theme of Employers must pay FICA taxes twice the amount of the FICA taxes withheld from their employees. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.

The difference between the amount received from issuing a note
payable and the amount repaid at maturity is referred to as:

A)

Interest.

B)

Principle.

C)

Face Value.

D)

Cash.

E)

Accounts Payable.

2. (1)

If a company has advance ticket sales totaling $2,000,000 for
the upcoming football season, the receipt of cash would be journalized as:

A)

Debit Sales, credit Unearned Revenue.

B)

Debit Unearned Revenue, credit Sales.

C)

Debit Cash, credit Unearned Revenue.

D)

Debit Unearned Revenue, credit Cash.

E)

Debit Cash, credit Revenue.

3. (1)

Contingent liabilities are recorded or disclosed unless they
are:

A)

Probable and estimable.

B)

Remote.

C)

Reasonably possible.

D)

Probable and not estimable.

E)

Possible and estimable.

4. (1)

Employees earn vacation pay at the rate of one day per month.
During the month of June, 10 employees qualify for one vacation day each.
Their average daily wage is $150 per day. Which of the following is the
necessary adjusting journal entry to record the June vacation benefits?

A)

Debit Vacation Benefits Expense $1,500; credit Prepaid
Vacation Benefits $1,500.

B)

Debit Vacation Benefits Expense $1,500; credit Vacation
Benefits Payable $1,500.

C)

Debit Payroll Tax Expense $1,500; credit Payroll Taxes Payable
$1,500.

D)

Debit Prepaid Vacation Benefits $1,500; credit Vacation
Benefits Payable $1,500.

E)

Debit Vacation Benefits Payable; credit Vacation Benefits
Expense $1,500.

5. (1)

On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500
note from Indigo Company to extend the due date on an overdue account. What
is the journal entry needed to record the transaction by Indigo Company?

A)

Debit Notes Payable $4,500; credit Accounts Payable $4,500.

B)

Debit Accounts Payable $4,500; credit Notes Payable $4,500.

C)

Debit Accounts Receivable $4,500; credit Notes Payable $4,500.

D)

Debit Cash $4,500; credit Notes Payable $4,500.

E)

Debit Sales $4,500; credit Notes Payable $4,500.

6. (1)

Obligations to be paid within one year or
the company’s operating cycle, whichever is longer, are:

A)

Current assets.

B)

Current
liabilities.

C)

Earned revenues.

D)

Operating cycle
liabilities.

E)

Bills.

7. (1)

If a company has advance subscription
sales totaling $45,000 for the upcoming year when four quarterly journals
will mailed to customers, the receipt of cash would be journalized as:

A)

Debit Cash
$45,000; credit Unearned Revenue $45,000.

B)

Debit Unearned
Revenue $45,000; credit Sales $45,000.

C)

Debit Cash
$45,000; credit Sales $45,000.

D)

Debit Sales
$45,000; credit Unearned Revenue $45,000.

E)

Debit Prepaid Subscriptions $45,000;
credit Sales $45,000.

8. (1)

Contingent
liabilities must be recorded if:

A)

The future
event is probable and the amount owed can be reasonably estimated.

B)

The future
event is remote.

C)

The future
event is reasonably possible but not estimable.

D)

The amount
owed cannot be reasonably estimated.

E)

The future
event is probable but not estimable

9. (1)

Short-term
notes payable:

A)

Cannot
replace an account payable.

B)

Can be
issued in return for money borrowed from a bank.

C)

Are not
negotiable.

D)

Are a
conditional promise to pay.

E)

Rarely involve
interest charges.

10. (1)

Amounts received in advance from customers
for future products or services:

A)

Are revenues.

B)

Increase income.

C)

Are liabilities.

D)

Are not allowed
under GAAP.

E)

Require an
outlay of cash in the future.

11. (1)

Gross pay is:

A)

Take-home pay.

B)

Total compensation earned by an employee before any
deductions.

C)

Salaries after taxes are deducted.

D)

Deductions withheld by an employer.

E)

The amount of the paycheck.

12. (1)

Athena Company provides employee health insurance that costs
$5,000 per month. In addition, the company contributes an amount equal to 5%
of the employees’ $120,000 gross salary to a retirement program. The entry to
record the accrued benefits for the month would include a:

A)

Debit to Medical Insurance Payable $5,000.

B)

Debit to Employee Retirement Program Payable $6,000.

C)

Debit to Employee Benefits Expense $11,000.

D)

Credit to Employee Benefits Expense $11,000.

E)

Debit to Payroll Taxes Expense $11,000.

13. (1)

Carson Company faces a probable loss on a pending lawsuit where
the amount of the loss is estimated to be $500,000. The journal entry to
recognize the potential loss is:

A)

Debit Prepaid Legal Expense $500,000; credit Contingent Legal
Liability $500,000.

B)

Debit Legal Expense $500,000; credit Lawsuit Payable $500,000.

C)

Debit Contingent Legal Expense $500,000; credit Contingent
Legal Liability $500,000.

D)

Debit Lawsuit Payable $500,000; credit Contingent Legal
Liability $500,000.

E)

No journal entry is required.

14. (1)

Which of the following do not apply to unearned revenues?

A)

Also called deferred revenues.

B)

Amounts received in advance from customers for future delivery
of products or services.

C)

Also called collections in advance.

D)

Also called prepayments.

E)

Amounts to be received in the future from customers for
delivery of products or services in the current period.

15. (1)

When a company is obligated for sales taxes payable, it is
reported as a(n):

A)

Contingent liability.

B)

Current liability.

C)

Business expense.

D)

Long-term liability.

16. (1)

A company has advance subscription sales totaling $45,000 for
the upcoming year when four quarterly journals will mailed to customers. When
the company mails the first quarterly journal to customers, it should record:

A)

Debit Prepaid Subscriptions $33,750; credit Unearned Revenue
$33,750.

B)

Debit Unearned Revenue $45,000; credit Cash $45,000.

C)

Debit Cash $11,250; credit Sales $11,250.

D)

Debit Unearned Revenue $11,250; credit Sales $11,250.

E)

Debit Prepaid Subscriptions $11,250; credit Sales $11,250.

17. (1)

On December 1, Victoria Company signed a 90-day, 6% note
payable, with a face value of $15,000. What amount of interest expense is
accrued at December 31 on the note?

A)

$0

B)

$75

C)

$900

D)

$225

E)

$300

18. (1)

On September 1, Knack Company signed a $50,000, 90-day, 5% note
payable with Central Savings Bank. What is the journal entry that should be
recorded by Knack upon maturity of the note?

A)

Debit Interest Expense $625; credit Interest Payable $625.

B)

Debit Notes Payable $50,000; credit Interest Revenue $625;
credit Cash $49,375.

C)

Debit Cash $50,625; credit Notes Receivable $50,625.

D)

Debit Notes Payable $50,625; credit Cash $50,625.

E)

Debit Notes Payable $50,000; debit Interest Expense $625;
credit Cash $50,625.

19. (1)

Accounts payable are:

A)

Amounts owed to suppliers for products and/or services
purchased on credit.

B)

Long-term liabilities.

C)

Estimated liabilities.

D)

Not usually due on specific dates.

E)

Always payable within 30 days.

20. (1)

The current FUTA tax rate is 0.6%, and the SUTA tax rate is
5.4%. Both taxes are applied to the first $7,000 of an employee’s pay. Assume
that an employee earned total wages of $2,900 in the current period and had
cumulative pay for prior periods of $5,800. What is the amount of
unemployment taxes the employer must pay on this employee’s wages for the
current period?

A)

$420.00.

B)

$348.00.

C)

$72.00.

D)

$174.00.

E)

$0.00.

21. (1)

A short-term note payable:

A)

Is a written promise to pay a specified amount on a definite
future date within one year or the company’s operating cycle, whichever is
longer.

B)

Is a contingent liability.

C)

Is an estimated liability.

D)

Is not a liability until the due date.

E)

Cannot be used to extend the payment period for an account
payable.

22. (1)

All of the following statements regarding FICA taxes are true
except:

A)

FICA taxes are deducted from the employee.

B)

Employers must pay withheld FICA taxes to the IRS.

C)

The amount of FICA deducted from the employee is credited to a
liability account.

D)

A self-employed person is exempt from FICA taxes.

E)

An employer must pay FICA taxes equal to the amount withheld
from the employee.

23. (1)

Trey Morgan is an employee who is paid monthly. For the month of
January of the current year, he earned a total of $4,538. The FICA tax for
social security is 6.2% and the FICA tax rate for Medicare is 1.45% for both
the employee and the employer. The amount of federal income tax withheld from
his earnings was $680.70. What is the total amount of taxes withheld from the
Trey’s earnings?

A)

$1,375.02

B)

$746.50

C)

$962.06

D)

$1,027.86

E)

$680.70

24. (1)

A liability is a probable future payment of assets or services
that a company is presently obligated to make as a result of past
transactions or events.

~

True

~

False

25. (1)

A contingent liability is a potential obligation that depends on
a future event arising from a past transaction or event.

~

True

~

False

26. (1)

A company cannot have a liability if the amount of the
obligation is unknown.

~

True

~

False

27. (1)

Unearned revenues are current liabilities.

~

True

~

False

28. (1)

A liability may exist even if there is uncertainty about whom to
pay, when to pay, or how much to pay.

~

True

~

False

29. (1)

Sales taxes payable is debited and cash is credited when
companies send sales taxes collected from customers to the government.

~

True

~

False

30. (1)

Companies with many employees rarely use a special payroll bank
account from which to pay employees.

~

True

~

False

31. (1)

Obligations not due within one year or the company’s operating
cycle, whichever is longer, are reported as current liabilities.

~

True

~

False

32. (1)

Uncertainties from the development of new competing products are
not contingent liabilities.

~

True

~

False

33. (1)

Employers must pay FICA taxes twice the amount of the FICA taxes
withheld from their employees.

~

True

~

False

34. (1)

Each employee records the number of withholding allowances
claimed on the withholding allowance certificate that is filed with the
employer, which is the form W-4.

~

True

~

False

35. (1)

All expected future payments are liabilities.

~

True

~

False



International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

Company # 11483120

Benefits You Get

  • Free Turnitin Report
  • Unlimited Revisions
  • Installment Plan
  • 24/7 Customer Support
  • Plagiarism Free Guarantee
  • 100% Confidentiality
  • 100% Satisfaction Guarantee
  • 100% Money-Back Guarantee
  • On-Time Delivery Guarantee
FLAT 50% OFF ON EVERY ORDER. Use "FLAT50" as your promo code during checkout